BoJ remains dovish, but for how long? - Nomura

Analysts at Nomura explained that at this week’s BOJ meeting, Governor Kuroda’s dovish stance remained intact.

Key Quotes:

"He repeated that the Bank is not at a point for considering policy exit, ruling out the possibility of near-term changes in policy rates and ETF purchases. Initially, JPY reacted positively to the statement and outlook report, as the BOJ’s assessment on current inflation expectations has improved slightly."

"However, Governor Kuroda ruled out the possibility of a nominal rate adjustment just because of higher inflation expectations. The BOJ’s unchanged dovish stance should support yen-crosses. The BOJ leadership nomination and wage negotiations will be the next important events for BOJ policymaking, although the BOJ’s dovish stance is likely to continue beyond these events."